Some laws to filing chapter 7 or 13 bankruptcy are common knowledge, such as the requirement for all filers to undergo debt or credit counseling to help better educate them on their spending habits. There is also the law stating that debtors with higher incomes will have to repay a portion of their debt prior to being allowed to file for chapter 13 bankruptcy. However, there have been laws recently taken into effect that are little known and need to be observed.

Chapter 7 Bankruptcy Restrictions
The most common form of bankruptcy just got a little more exclusive. Under the old rules people could decide which chapter of bankruptcy was best for them- most choosing chapter 7. However, those with higher incomes must now be aware that they may not qualify to file for chapter 7 bankruptcy and will be forced to file under chapter 13. The gauge they use to decipher “high income families” is to compare your current monthly income with that of the median monthly income of a family of similar size in your state. Another factor to account for is how you current monthly income will be calculated. It is not what you are currently making at the time when you file for bankruptcy but rather an average of your income from the six months prior to making your claim. This poses a big problem for those who are filing bankruptcy after recently losing a job.

Restrictions on Lawyers
Among the new laws lawyers much personally vouch for the accuracy of the information provided. Thus, time spend on each bankruptcy case will increase, in turn driving up your lawyer bill.

Can You Live On Less?
Under the old rules, those who filed for chapter 13 did have to devote all disposable income to a payment plan. The new laws make this a little more challenging. In addition to handing over all disposable income, chapter 13 filers will have to calculate that amount from an expense amount allowed by the IRS- meaning they get to dictate what your living costs should be. Keeping in mind under chapter 13 you are still required to calculate disposable income according to an average of what you had made over the last six months.

Value Your Property at Replacement Cost
In the past heirlooms and other property that a debtor might want to keep were expected to be of little value- deeming them exempt. However, new laws force you to value all property at retail value taking into consideration age and condition- a requirement that, in most cases, will inflate the cost of your property leaving you at risk of losing it.

Don’t Count on State Exemptions
The new rules entail that a bankruptcy filer live in a sate for at least two years in order to gain from a state’s exemption laws otherwise they can only claim those exemptions of the previous state in which they lived. The same goes for homestead exemptions only this requires over 40 months of residency.

Recent changes in bankruptcy laws have toughened up procedures and this means that fewer people than ever before are eligible to be declared bankrupt. However, contrary to popular belief, this does not mean that ‘normal people’ are ineligible. Depending upon your own personal situation, bankruptcy could still be the solution to your financial worries.

The bankruptcy law change came in 2005, when Congress reformed the bankruptcy code. The bankruptcy law change came after pressure from the credit industry on Congress and many people opposed such a change. However, it was passed and now legal professionals are dealing with the more complex procedures in order to assist those considering filing.

The main change that came as a result of the bankruptcy law change of 2005 was that a means test was introduced. What this essentially means is that, in order to be officially declared bankrupt, you have to be able to prove that you absolutely cannot pay back debts owned under your current circumstances. If you are somebody whose income is lower than the median for the state in which you live, then the means test will suffice. If you have a higher than median income for your state, however, then you will be subject to further inquisition and a tougher procedure in order to prove that you cannot pay back money you owe. This will involve providing financial documentation, a list of expenses, a budget and bank statements and so on. As well as this you will have to document details of all debts owed in order that your situation can be correctly looked at. Do so with care as even the smallest accidental error can lead to problems later on in proceedings that could potentially hinder your case for bankruptcy.

The bankruptcy law change means it is now more difficult. It is not, however, impossible.

Get the right information on Bankruptcy Law Change before you make that important decision. To get the facts on bankruptcy, simply Click Here

People facing bankruptcy always meet difficulties while managing their money as their bank accounts were closed when they declared bankrupts. Without bank account it very hard to deal with the monetary matters and regain the financial position in the market. But now, one can open the account with all the basic banking facilities with the help of Bank Account for Bankrupts.

With the help of this bank account one can easily manage its money and that without facing problem. This account is offered by High Street Banks to the people currently bankrupt. This account provides all the basic facilities to its holder.

With this service account holder can easily enjoy various benefits and services such as:

*Quick and easy account without any credit check

*This bank account comes with guaranteed acceptance to every individual

*Personal account manager is appointed for managing your financial matters

*Safe and secure internet and telephonic banking is also available.

*Offers Prepaid MasterCard so you can easily deal with your expenses

With the help of this service people who find difficultly in controlling their funds can easily manage their money. Poor credit holders can easily take this financial service for getting back their finances on track. If you have discharged from bankruptcy problem then make sure your credit report clearly shows it because it can help you to get the account with more facilities.

To avail this amazing Bank Account for Bankrupts banking service you just need to offer some of your personal documents which include your identity proof and proof of your address. Bank verifies your documents and asks to submit the account opening and monthly charges. These fees are quite affordable for a working individual.

With the help of online medium one can easily avail this service from the convenience of its home or office. On net one will find number of brokers and banks that help you to open new bank account without facing any difficulty.

This year President Bush signed a bill to change the bankruptcy law. This will go into effect this October of 2005. The new bankruptcy law will make it more difficult to file for bankruptcy. This may be bad news to individuals who are drowning in debt. On the other hand it is good news to business and individuals that work very hard to maintain good credit and not suffer from profit loss.

When the new bankruptcy law goes into effect it will be harder for anyone to file for chapter 7 and chapter 11 bankruptcy. Filing for chapter 13 bankruptcy will be your most likely option.

What is Chapter 13 bankruptcy? It is an option that is given to those who have any kind of steady income. Basically, anyone who has a job. It is a payment plan and not a way to wipe a way your debt. Which means the days of wiping the slate clean are over. However Chapter 13 does protect your assets. The court devises a payment plan in which you are to pay to a trustee that is appointed by the court. Usually the payments are to be paid off in three years time. There are some exceptions, but that is up to the courts to decide.

So now that the bankruptcy law is changing what are some things people should do to avoid debt?

One very important thing is to never live outside your own means. If you have credit cards don’t use them as if you will have the money every month to pay the minimum balance. Be prepared for the unexpected such as a loss of your job or loss of any other source of income. This is where some people get into trouble. Protect yourself and your assets by being insured. Some people get into debt due to unexpected medical expenses or property damage. When you don’t have a way to help cover these expenses you will find your self in some kind of debt.

Try and keep some money off to the side in case some kind of unplanned expense should arise. Have some kind of back up plan to avoid the need for bankruptcy.

One of the reasons for the bankruptcy law change is because of over use of the system. There are actually some people who pre plan filing for bankruptcy as they abuse their credit cards. It sounds hard to believe, but it is true.

One may ask how this is fair to the people who didn’t do anything wrong and still landed them self in debt? Unfortunately changes in the law aren’t always fair to those who did nothing wrong. As the old saying goes, ” It only takes one bad apple to spoil the bunch”.

The only thing we can do now is become more responsible about our finances. Take more steps to avoid the need to ever file for bankruptcy.

Bankrupts are a legally declared state in which one’s account can not cover all his responsibilities. This is the condition where a person or a company suffer a huge loss in financial terms. But being bankrupt is not the end of the hope. A person still can manage the bank account with the help of bank accounts for bankrupts. These bank account specially target to the people who are facing insolvency.

Bank account for bankrupts is as simple as a normal bank account, apart from one significant difference: there are no essential credit checks. If you are over 18 and a UK citizen all you require to do is provide photo I.D proof. By simply providing all the required documents and filling out an application form, you can get a current account without being worried about your bankruptcy.

If you are lucky enough then there will be no extra fees which you need to be paid. There is no need for you to go your local branch any longer, as Internet banking lets you run your money in the console of your own home. An added bonus is that you can access to your account through your phone when you are in move.

The accounts give access to cheque books, debit cards, standing orders and direct debits. They will not hold access to any lending services, but for anyone who has been struggling to get a business account will get benefit from bank accounts for bankrupts. Going for this option will be a good move for the people who are facing insolvency. This account will help you to manage your monthly budget and with so many things.